What is the National Bankruptcy Reform Act?

The National Bankruptcy Reform Act (NBRA) is a federal law that was enacted in 1978 and applies to all states, including North Carolina. It is designed to regulate how bankruptcies and debtors are handled in the courts. The NBRA sets forth certain procedures for debtors filing for bankruptcy, as well as establishing rights and protections for creditors, including banks. The NBRA also enables individuals to obtain a fresh start after filing for bankruptcy. Under the NBRA, individuals who file for bankruptcy in North Carolina must meet certain qualifications, including filing a petition with the United States Bankruptcy Court. The court will then review the petitioner’s assets and liabilities and determine if they are eligible for a Chapter 7 or Chapter 13 bankruptcy. Additionally, individuals must complete credit counseling before filing and attend a debtor education class after filing. The NBRA also protects the rights of creditors, including banks, by specifying certain forms of repayment and setting a limitation on the amount of very secured debts that can be discharged. Additionally, the NBRA limits the number of times an individual can file for bankruptcy in their lifetime. The NBRA is an important federal law that provides protection for individuals in North Carolina who are facing financial hardships and are in need of a fresh start. It also ensures that creditors, such as banks, are given certain rights and protections in the process.

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What is the National Bankruptcy Reform Act?

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